Business activity remained robust at SNP Schneider (DE:SHFG) in Q1, as revenue jumped 52% to €18.5m, including 30% organic growth and an initial €2.6m contribution from the acquired Astrums and Hartung businesses, which were consolidated from the beginning of January. Q1 bookings were very healthy at €26.2m, representing 1.42x Q1 revenues, while the backlog lifted by 52% to €28.7m. Given the buoyant backdrop, we continue to believe the shares look attractive trading on c 18x our maintained FY17 earnings.
Q1 results: Book-to-bill very strong at 1.42x
Professional services revenues jumped 63% to €15.5m, including 36% organic growth. Software revenues grew by 10% to €3.0m, with SNP Transformation Backbone contributing €1.8m, up from €1.6m in Q115. EBITDA expanded by 54% to €1.9m to reflect a 10.5% margin (Q115: 10.4%). The group ended the period with 588 employees, up from 401 over the three months. Headcount is expected to rise towards 700 by year end, driven by the two training schemes the group has in Germany and the US. Net debt rose by €3.6m over the quarter to €4.8m, mainly due to a €1.7m operating cash outflow and €2.1m in acquisition payments. The Q1 report reveals that Astrums and Hartung cost a combined €6.34m, of which €4.44m has already been paid, and there is a €1.9m contingent deferred consideration. In addition, the group has a small €1.3m pension deficit.
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